ONE Gas Raises 2026 Outlook for a Second Time

The Tip Desk · November 3, 2026 · 3 min read

The utility lifted 2026 adjusted earnings guidance to $4.95 to $5.01 a share after third-quarter adjusted net income of $33.5 million, or $0.53 a share.

ONE Gas, Inc. (OGS), a 100% regulated natural gas utility serving more than 2.3 million customers in Kansas, Oklahoma and Texas, raised its 2026 adjusted earnings outlook for a second time this year after a third quarter in which new rates and residential growth lifted operating income.

The company now expects 2026 adjusted net income of $313 million to $317 million, compared with a previously announced range of $310 million to $314 million. Adjusted earnings per diluted share are expected at approximately $4.95 to $5.01, versus the prior $4.89 to $4.95 range. The midpoint of adjusted earnings per diluted share moved to $4.98 from $4.92. In August, after second-quarter results, the company had already lifted 2026 adjusted earnings expectations to the upper half of the then-current $4.83 to $4.95 range.

Chief executive officer Robert S. McAnnally said the company again delivered positive results and, for the second time this year, raised its 2026 financial outlook. He said the 2026 financing plan is complete and that the company sees continued opportunity as diverse large-load demand develops across its footprint. He also said the company expects average 2026 customer bills to remain flat to last year.

Third-quarter 2026 adjusted net income was $33.5 million, or $0.53 a share, compared with $28.6 million, or $0.47 a share, a year earlier. GAAP net income was $31.2 million, or $0.49 a share, versus $26.5 million, or $0.44 a share.

Operating income rose to $77.4 million in the third quarter from $65.4 million a year earlier. The company said the increase primarily reflected a $13.5 million rise in revenue from new rates and a $3.3 million increase in residential sales due primarily to net customer growth in Oklahoma and Texas. Those gains were partly offset by $1.0 million higher employee-related cost and $2.8 million higher depreciation and amortization.

Total revenues were $391.3 million, versus $379.1 million a year earlier. Natural gas sales were $338.4 million, transportation revenues $31.8 million, securitization customer charges $11.4 million, and other revenues $9.8 million. Average customers totaled 2,295 thousand, with 2,122 thousand residential customers. Natural gas sales volumes delivered were 11.7 billion cubic feet; transportation volumes were 47.6 billion cubic feet.

Capital expenditures and asset removal costs were $229.0 million in the third quarter, versus $207.6 million a year earlier, primarily for system integrity and extension of service to new areas. Excluding interest related to KGSS-I securitized bonds, net interest expense increased $1.6 million, which the company said was due primarily to interest on a $250 million 13-month unsecured term loan that matured in September 2026 and the August 2026 issuance of $375 million of 5.45 percent 10-year senior notes due September 2036.

Rate actions continued through the quarter. In June 2026, the Texas Railroad Commission approved a $36.9 million Gas Reliability Infrastructure Program increase for Texas Gas Service, effective in July. On September 22, the Kansas Corporation Commission approved an approximately $14.3 million Gas System Reliability Surcharge increase for Kansas Gas Service, effective in October. Oklahoma Natural Gas’s annual Performance-Based Rate Change application, which included a $28.7 million base-rate revenue increase, was approved by the Oklahoma Corporation Commission on October 14 and has been appealed to the Oklahoma Supreme Court.

The board declared a quarterly dividend of $0.68 a share, or $2.72 annualized, payable Dec. 3, 2026, matching the dividend declared after the second quarter. Capital investments, including asset removal costs, are still expected to be approximately $800 million in 2026, with about $230 million of that for extensions to new customers.